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Costing MCQ Questions and Solutions with Explanations | Commerce

Costing MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Costing MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-1 section-5

Each section contains 100 MCQs on Costing .
1
Industrial engineering method is used to analyze relationship between
Discuss
Answer & Solution
Answer: Option C
Solution:
Industrial engineering method is used to analyze relationship between input and output. Industrial engineering method is a physical way of examining the relationship between cost drivers and costs by analyzing the inputs coming into the company, the outputs that are created, and the work that goes into the process.
2
Residual term is also considered as
Discuss
Answer & Solution
Answer: Option D
Solution:
Residual term is also considered as error term and disturbance term.
3
Percentage of variation in Y explained by X is measured by
Discuss
Answer & Solution
Answer: Option C
Solution:
Percentage of variation in Y explained by X is measured by coefficient of determination. The coefficient of determination (denoted by R2) is a key output of regression analysis. It is interpreted as the proportion of the variance in the dependent variable that is predictable from the independent variable.
4
Small residual terms and positive slope of line indicate
Discuss
Answer & Solution
Answer: Option D
Solution:
Small residual terms and positive slope of line indicate directly proportion.
5
An analysis of data over successive past periods, which pertain to some plant, activity and organization is called
Discuss
Answer & Solution
Answer: Option C
Solution:
An analysis of data over successive past periods, which pertain to some plant, activity and organization is called time series. A time series is a sequence of numerical data points in successive order.
6
Individual variable coefficient's multicollinearity leads to
Discuss
Answer & Solution
Answer: Option C
Solution:
Individual variable coefficient's multicollinearity leads to increase in standard error.
7
constant variance is classified in assumptions testing as
Discuss
Answer & Solution
Answer: Option B
Solution:
Constant variance is classified in assumptions testing as homoscedasticity. The assumption of homoscedasticity (meaning “same variance”) is central to linear regression models.
8
As compared to cumulative average-time learning model, learning model which predicts more cumulative total time to produce more units is known as
Discuss
Answer & Solution
Answer: Option A
Solution:
As compared to cumulative average-time learning model, learning model which predicts more cumulative total time to produce more units is known as incremental unit time learning model.
9
Model, in which produced unit doubles every time as cumulative average time per unit decreases, by a constant percentage can be classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Model, in which produced unit doubles every time as cumulative average time per unit decreases, by a constant percentage can be classified as cumulative average time learning model. The cumulative average time learning curve represents the fact that the time spent per unit declines by a constant percentage as the number of units produced.
10
In specification analysis, assumptions related to variance states that:
Discuss
Answer & Solution
Answer: Option A
Solution:
In specification analysis, assumptions related to variance states that variance of residuals is constant.